THIRUVANANTHAPURAM: In an apparent instance of the ‘powers be’ working at cross-purposes, the GST is going to have an adverse impact on ayurveda medicines and products - which will cost five-seven per cent over and above the present cost- even as the Centre is promoting ayurveda and other traditional forms of medicine in a big way.
Not only this, while allopathy drugs will become cheaper, ayurveda prices are going to increase post-GST, say ayurveda practitioners and manufacturers.
Rubbishing the government’s claims on GST bringing down the cost of ayurveda drugs , Ayurvedic Medicine Manufacturers Organisation of India (AMMOI) general secretary D Ramanathan said the higher price was going to have an adverse impact on the market.
According to Ramanathan, ayurvedic medicines are classified into two categories - classical and patent. While the tax on classical products has not been slashed, the tax on patent drugs have been brought down from 13.1 per cent to 12 per cent under the GST, he said.
In Kerala, 95 per cent of the drugs manufactured come under the classical category. As such the slashing of prices on patent drugs will have no impact in the state, Ramanathan said.
Before GST was introduced, the classical drugs invited two per cent Excise duty and five per cent VAT, which added up to seven per cent tax. But as per the new GST regime, the tax on ayurveda products is 12 per cent, which means an increase of five per cent.
Ramanathan said the ‘Arishtams’ which had only five per cent VAT, besides being exempted from Excise duty, will have 12 per cent tax as per GST, an increase of seven per cent.
The Ayurveda Medical Association of India (AMAI), which has already given a representation to the state and the Centre to review the GST rates, said the new regime is not good for the ayurveda sector.
“The ayurveda treatment is based on classical medicines. Even in ‘Panchakarma’ therapy, classical medicines are used. There is no doubt ayurveda is going to become costly with GST as all classical drugs are going to cost more,” said Rejith Anand, AMAI general secretary.
A majority of ayurveda drugs’ manufacturers in the state is already struggling with the non-availability and high prices of raw materials, according to Anand. In such a scenario, higher GST means higher price for ayurveda medicines and products, he said.
Besides, Anand said the state government was for reducing the GST rate and had vowed to exert pressure on the Centre in this regard.